Hughes v. Potts

87 S.W. 708, 39 Tex. Civ. App. 179, 1905 Tex. App. LEXIS 269
CourtCourt of Appeals of Texas
DecidedApril 22, 1905
StatusPublished
Cited by5 cases

This text of 87 S.W. 708 (Hughes v. Potts) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hughes v. Potts, 87 S.W. 708, 39 Tex. Civ. App. 179, 1905 Tex. App. LEXIS 269 (Tex. Ct. App. 1905).

Opinion

BOOKHOUT, Associate Justice.

On the 20th day of July, 1898, W. T. Hughes filed his original petition in the District Court of Hill County, Texas, against B. O. Potts, to recover on one certain promissory note in the sum of $1,355.55, and on the same date filed his affidavit and bond in garnishment and procured a writ of garnishment to be *181 issued against the appellee, E. S. Crumley, which was duly served by the sheriff of Hill County, Texas, on said Crumley, July 20, 1898. At the instance of said Crumley the Cooper Grocery Company and other creditors of the said B. 0. Potts were made defendants to said garnishment proceedings for the purpose of adjusting the interest of the creditors of the said B. 0. Potts in and to the money and property in the hands of said E. S. Crumley as the assignee of the said B. 0. Potts at the date said writ of garnishment was served upon him. The Cooper Grocery Company, appellant, and the appellees, Stroud-Gibson Grocery Company and T. M. Stroud & Company, intervened in said suit and each set up a claim to the fund. A trial resulted in a judgment against Cooper Grocery Company and in favor of the appellees. From this judgment Cooper Grocery Company alone appealed.

Conclusion of fact. 1. B. 0. Potts was a merchant in Hillsboro, Texas, and being variously indebted, among others to the appellees Stroud-Gibson Grocery Company and T. M. Stroud & Company, and the original plaintiff in the case, W. T. Hughes, and appellant, on December 31, 1897, duly executed and delivered a deed of general assignment for the benefit of creditors, to appellee, E. S. Crumley, as assignee, who duly qualified as such and proceeded to administer said estate in accordance with law. From the proceeds of the estate he derived the sum of $8,168.39. The taxes and expenses of his administration were $720.05, and there were filed with him within the time prescribed by law, properly verified claims of creditors who had properly accepted the assignment, amounting to the sum of $577.24, leaving in his hands at the date of the service upon him of the garnishment writs in the suits of appellees Stroud-Gibson Grocery Company and T. M. Stroud & Company, hereafter referred'to, the sum of $871.10.

2. At the time of the assignment B. 0. Potts was indebted to appellee Stroud-Gibson Grocery Company in the sum of $765.95; to appellee T. 3\1. Stroud & Company in the sum of $108.69; to W. T. Hughes in the sum of $1,315.55, and to appellant Cooper Grocery Company in the sum of $405.53.

3. Eeither of the appellees Stroud-Gibson Grocery Company nor T. M. Stroud & Company ever filed with the assignee, Cromley, their consent to said assignment as provided by article 75 of Bevised Statutes, and never in any way consented to or accepted same.

4. The said appellees, as well as the plaintiff, Hughes, within the time provided by law, did file with said assignee verified claims of their accounts against the assignor, Potts, but not verified as the law provided. After the expiration of the time within which, according to law, they could file their accounts, said appellees were notified by the assignee, Crumley, that their accounts were not properly verified, and upon the advice of his attorneys, he would not permit them to participate in the proceeds of the estate.

5. Hpon the receipt of such notification from the assignee, appellees Stroud-Gibson Grocery Company and T. M. Stroud & Company, on July 18, 1898, respectively filed suit upon their respective claims against the said Potts, in courts having jurisdiction, and duly caused writs of garnishment to issue against the assignee, Crumley, seeking to im *182 pound any proceeds of said estate in his hands, the writs being served upon him on the same day. On February 13, 1898, in said causes said appellees duly recovered judgment against the said Potts upon their respective claims, and respectively for the amount thereof against the assignee, Crumley, in the garnishment suits against him.

6. The plaintiff, Hughes, on July 20, 1898, two days after said appellees had filed their suits just referred to, filed suit upon his claim against Potts, and garnished Crumley, and on September 27, 1898, recovered judgment against Potts for the amount of his debt, $1,315.55.

7. The appellant Cooper Grocery Company consented to the assignment and within the time provided by law filed with the assignee a claim verified in the manner set out in the opinion. On July 13, 1898, and not before, the assignee, Crumley, notified said appellant that its claim was not verified as required by law, and he had been advised by his attorneys not to allow it to participate in the proceeds of the assignor’s estate. After the receipt of said notification, said appellant, on September 20, 1898, filed with the said assignee an amended affidavit to its claim, properly, verified. The date upon which this amended affidavit was filed, to wit, September 20, 1898, was after the time prescribed by law within which claims could be filed with the assignee, had expired, and was several months subsequent to the date, July 18, 1898, upon which appellees Stroud-Gibson Grocery Company and T. M. Stroud & Company had caused writs of granishment to be served upon the said assignee, as above stated.

Opinion. Under appellant’s first and second assignments of error, which are grouped, it is contended that the affidavits to its claim was substantially in compliance with the law and sufficient to entitle it to share in the distribution of the estate of said R. 0. Potts, assignor.

The affidavit was as follows:

“State of Texas, County of McLennan.
“Personally appeared before me, J. M. Turner, a notary public in and for the county of McLennan, Texas, president of the Cooper. Grocery Company of Waco, Texas, who being sworn says that this account is correct, and that all payments, offsets and credits have been deducted, and that it is due and unpaid,” etc.

The affidavit required by the statute is “that the statement is true, that the debt is just, and that there are no credits or offsets that should be allowed against the claim, except as shown by the statement,” and the statute provides that “no creditor shall take any benefit under any assignment whatever who neglects to file such a statement.” This statute must at least be substantially complied with by a creditor before he is entitled to any benefit under the assignment. The affidavit to the appellant’s claim omits to say that the statement is “true” and that it is “just.” The statement in the affidavit that the account is “correct” is not equivalent to saying that it is “true” and “that the debt is just.” An account might be correct and yet the debt not be just. The Legislature evidently believed, in enacting the statute, that it was more important that the creditor should state that his debt was “true” and “that it was just” than that he should merely make affidavit that it was “correct.” The affidavit does not, in our opinion, meet the requirements *183 of the statute, and the assignee properly refused to permit the creditor to take any benefit under the assignment. (Wynne v. Hardware Co., 67 Texas, 40 ; Lovenberg v. Bank, 67 Texas, 440; Strickland v. Sandmeyer, 21 Texas Civ. App., 351, 52 S. W. Rep., 89; Brin v.

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Bluebook (online)
87 S.W. 708, 39 Tex. Civ. App. 179, 1905 Tex. App. LEXIS 269, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hughes-v-potts-texapp-1905.